Poker Players Alliance

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The Benefits of Regulating Internet Poker and HR 2267 Millions of Americans play poker on the Internet • Internet poker is a worldwide phenomenon which has continued to grow for more than a decade. It is estimated that approximately 10 to 15 million Americans play Internet poker with some regularity. • Internet poker has created thousands of online communities dedicated to discussing poker playing strategies, sharing news and information about poker and related games and other forums of free and open expression. • Wagering on Internet poker is separate and distinct from traditional forms of casino gambling. In poker, individuals compete against each other based on their own skill levels, and not the house (as in roulette, bingo, or sports wagering). This is truly a peerto-peer, almost social networking, environment. The U.S. has a responsibility to protect consumers who play online • Currently, companies that offer Internet poker are licensed, regulated and taxed in their home country jurisdictions. However, the United States has failed to exercise oversight and control of Internet gaming even though the U.S. represents the largest percentage of Internet poker players worldwide. • The millions of Americans who play Internet games of skill will benefit greatly from the additional protections U.S. regulation can provide. Moreover, licensing and regulation will help guarantee the proper safeguards for our nation’s most vulnerable populations. • HR 2267 establishes the needed licensing and regulatory framework for the United States to exercise appropriate control and oversight over Internet poker and other gaming on the Internet. • This oversight includes: Thorough vetting of potential licensees; mandatory implementation of technologies to protect against underage gambling and to monitor and detect individuals with excessive gaming habits; high standards to thwart fraud and abuse of customers; regulation to prevent money laundering; and, processes to prevent tax avoidance. Current U.S. policy fails to protect Americans and provides no industry oversight • The Unlawful Internet Gambling Enforcement Act (UIGEA) signed into law as part of the 2006 Safe Ports Act (Pub.L. 109-347) does nothing to prevent underage gambling or protect problem gamblers. Moreover, it fails to protect the millions of responsible American men and women who continue to enjoy Internet poker from the few “bad actors” who choose to sacrifice their customers’ trust for short-term gain. • HR 2267 will provide these necessary consumer protections and industry oversight. The bill will provide for proper means to investigate allegations, administer due process and then apply appropriate penalties for the wrongdoers and recourse for the consumer. Tremendous state and federal revenue can be realized through regulation of Internet poker • Conservative estimates have shown that more than $3 billion in annual revenue can be raised by licensing and regulating Internet poker. • This is not a new tax on consumers, rather, regulation would provide the framework in which taxes on poker winnings can be properly reported and collected. In large part these taxes are not being collected today. • Moreover, there would be the collection of corporate taxes by the companies that own and operate these Web sites, which is now only collected by other countries which regulate Internet gaming. Prohibitions will not work • History has shown that when something is banned, it is simply pushed underground…free of any oversight or protections for consumers. • Internet poker is an established form of recreation for millions of Americans. While some might like to eliminate the industry, the Genie cannot be put back into the bottle. The real question is whether the federal government wants to have a say in how Americans can play this great American pastime. • Outright prohibitions will not address the concerns raised over online gambling. UIGEA will in no way protect underage and problem gamblers, which online poker opponents cite as their chief concerns. • Solutions like HR 2267 provide the most rational approach to controlling this industry and preserving it for adults who chose to engage in this skillful activity.